France’s Public Finances Are at ‘Alert Level,’ Le Maire Says

Bruno Le Maire, France's finance minister, said that France's public finances have reached an alert level.

The president lost his majority in the National Assembly in elections this month, and his government is trying to negotiate a revised budget with opposition parties.

Le Maire said that not everything is possible because of public finances. We used to be able to borrow at negative rates but now we are borrowing more than 2%.

The finance minister said debt charges on inflation-linked bonds will go up.

Before the presidential elections in April and the legislative vote in June, the government earmarked 25 billion euros for a so-called "inflation shield" to protect households from rising prices.

Le Maire said that the proposals from the opposition would be too expensive.

Le Maire said it was important to reduce public debt because it compromises our independence and sovereignty.